The historical rank and industry rank for Dreamworks Animation SKG's Gross Margin % or its related term are showing as below:
DWA's Gross Margin % is not ranked *
in the Media - Diversified industry.
Industry Median: 38.375 * Ranked among companies with meaningful Gross Margin % only.
Dreamworks Animation SKG had a gross margin of 44.82% for the quarter that ended in Jun. 2016 => Durable competitive advantage
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Dreamworks Animation SKG's Gross Margin %
For the Broadcasting subindustry, Dreamworks Animation SKG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dreamworks Animation SKG's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Dreamworks Animation SKG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dreamworks Animation SKG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dreamworks Animation SKG had a gross margin of 44.82% for the quarter that ended in Jun. 2016 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dreamworks Animation SKG Gross Margin % Related Terms
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Dreamworks Animation SKG (Dreamworks Animation SKG) Business Description
Dreamworks Animation SKG Inc is a Delaware Corporation incorporated on October 28, 2004. The Company creates and exploits family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products. The Company operates through the following segments: Feature Films which consists of the development, production and exploitation of feature films in the theatrical, television, home entertainment and digital markets; Television Series and Specials which consists of the development, production and exploitation of television, direct-to-video and other non-theatrical content in the television, home entertainment and digital markets; Consumer Products which consists of merchandising and licensing activities related to the exploitation of its intellectual property rights; and All Other which consists of all other segments, primarily ATV and live performances. It has released a total of 27 animated feature films, including the franchise properties Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon. In addition to the creation of feature films, it is engaged in a number of initiatives to more fully exploit its franchise and other properties. One of these initiatives is the development and production of episodic series. The Company has recently entered into long-term agreements with Netflix and certain foreign television broadcasters to deliver existing and future series over the next several years. It conducts its business in two studios: in Glendale, California and in Redwood City, California. It is currently producing six animated feature films for release in 2014 and 2015. Its films and other projects compete on a broad level with all forms of entertainment and other consumer leisure activities. Its competition for film audiences generally comes from other wide-release "event" films released into the theatrical market at or near the same time as its films.
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